Short Aurobindo Pharma, RPower, Indiabulls Real: Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater of FortuneWizard.com shares his trading strategies for the day.

I have a long call on PNB Gilts. Based on result estimates, we feel that numbers are quite ahead of street estimates and thus one can remain long on this particular stock with a stop loss of around Rs 27.55 and a target price of Rs 29.10-30.50.

I am going to short Aurobindo Pharma for a target of Rs 166 and a stop loss of around Rs 180. The stock had seen some technical cool off. Given that the way Wockhardt and other stocks have cracked down. We suggested that at Rs 1,800-1,900 levels, Wockhardt does not look that lucrative on risk reward basis. Now it has almost corrected by 33 percent. We feel that there is a likely small correction even due in Aurobindo Pharma which is correcting to Rs 155 odd mark where again a long term perspective investment can be taken up.

I am also going to short Reliance Power for a target of close to Rs 69.80 and a stop loss of around Rs 73.25 on closing basis.

I have a short call on Indiabulls Real Estate for a target of Rs 70. It’s a technical call. The way stocks in the real estate sector have actually tanked, we suggested even yesterday that if HDIL breaks that Rs 55 mark, that could be howler for the stock and it would correct significantly. It was just based on the rumour of some project wins. Since it was a more of a distribution pattern and it opened below that, we feel there is likely sell off in today’s trade if the stock does not go up by two-three percent from current levels. So maintain a tight stop loss on the stock at Rs 77.25.